Today, many real estate investors are asking themselves what the rest of 2020 will be like. Some have already shifted their plans or put them on hold over the past couple of months, and understandably so. Everyone seems to be wondering if the market is going to change and when the economy will turn around. If you’re trying to figure out what’s going to happen, you’re not alone.
This spring in the 2020 NAR Flash Survey: Economic Pulse, the National Association of Realtors (NAR) has been tracking the behavior changes of buyers and sellers.
NAR’s research showed that sellers are positioning themselves to make moves this year. 77% of potential sellers are preparing to sell their homes once stay-at-home orders are lifted and they feel more confident, which means more homes will start to be available for interested buyers.
The survey also notes that the recent pandemic has clearly impacted buyers. 42% of buyers delayed the process of purchasing, and 17% stopped looking due to concern about their job or potential job loss.
Important also to note, buyers have changed at least one home feature important to them due to COVID-19. The most common home features now important are home offices, yard for exercise or growing food, and space to accommodate a family member new to their home (older adult relative, new baby, new pet), and for more personal space.
Some key takeaways for real estate investors:
There could be an inventory spike at some point in the near future when all of those potential sellers decide it’s safe to finally move. If you’re consolidating your portfolio, or thinking about selling underperforming properties, now may be the time.
Inventory spikes are always good for prospective buyers. If you’re looking to acquire more property, develop a plan of action so you’re prepared when new opportunities enter the market.
As a fix-and-flip investor, it’s good to keep in mind that buyers’ preferences have changed a bit as a result of the pandemic. When planning out your next remodel, catering to those new wishes may help you sell quicker and for top dollar.
To check out the entire NAR survey, click here, and give us a call if you need financing assistance…we’re always here to help!
Also Check Out: Building Community: Best Forums for Real Estate Investors